Weeks After Italy Guarantees All Banks, The Markets Respond By Signaling Italy's Rising Risk Of Default.

Back on October 12th we highlighted the public proclamation of Italian Prime Minister Berlusconi that no Italian banks would fail. Politicians can say what they will but often their words are hollow promises. One must remember that politicians are in the same game as Wall Street - the "other people's money" business. Of course, they plan to save the day with your money just as Wall Street planned its Brave New World with your money.

The reality is only transparency and public accountability of government and politicians well in advance of this crisis could have made an impact. Now that they have sewn the seeds, their proclamations ring hollow to the markets.

Weeks later the Wall Street Journal reports the markets are signaling that political guarantees from the graduates of the Stalin School of Economics, including Berlusconi, are increasing the risks of sovereign debt default. In the best of times no country can make the promises being made today. Especially many of the promises coming out of European countries. The European Central Bank is facing a mountain of challenges well beyond its charter ==>> And therefore, so is the Euro.